Non-resident's taxable income

(1) Income tax is charged on income derived by a non-resident natural person from work in Estonia (subsections 13 (1) and (1¹)) if the payment was made by an Estonian state or local government authority or resident or a non-resident operating in Estonia as an employer or a non-resident through or on account of its permanent establishment (§ 7) located in Estonia, or if the person has stayed in Estonia for the purpose of employment for at least 183 days over the course of 12 consecutive calendar months. If a non-resident who receives remuneration on the basis of such contract under the law of obligations has been entered in the commercial register in Estonia as a sole proprietor and such remuneration is his or her business income, the income is subject to taxation pursuant to subsection (3).
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

(2) Income tax is charged on emolument paid by a resident legal person to a non-resident member of a management or controlling body (§ 9) or a non-resident through or on account of its permanent establishment located in Estonia to a non-resident member of a management body of the permanent establishment for the performance of his or her functions.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

(3) Income tax is charged on business income derived by a non-resident in Estonia (§ 14). If the non-resident is a legal person located in a low tax rate territory (§ 10), income tax is charged on all income derived by the non-resident from the provision of services to Estonian residents, irrespective of where the services were provided or used.

(4) Income tax is charged on gains derived by a non-resident from a transfer of property (subsection 15 (1)) if:
1) the sold or exchanged immovable is located in Estonia, or
2) the movable subject to entry in a register was in an Estonian register prior to the transfer, or
3) [Repealed - RT I 2006, 28, 208 - entry into force 01.01.2007]
4) the transferred real right or right of claim is related to an immovable or a structure as a movable, which is located in Estonia, or
5) the transferred holding is a holding in a company, contractual investment fund or other pool of assets of whose property, at the time of the transfer or during a period within two years before transfer, more than 50 per cent was directly or indirectly made up of immovables or structures as movables located in Estonia and in which the non-resident had a holding of at least 10 per cent at the time of transfer.

(5) Income tax is charged on payments specified in subsections 15 (2) and (3) which are made to a non-resident by a resident legal person.

(5¹) [Repealed - RT I 2008, 51, 286 - entry into force 01.01.2009]

(6) Income tax is charged on income derived by a non-resident from a commercial lease or royalties (§ 16) if:
1) the immovable subject to a commercial or residential lease or encumbered with limited real rights is located in Estonia, or
2) the property subject to a commercial or residential lease or encumbered with limited real rights is entered or is subject to entry in an Estonian register, or
3) [Repealed - RT I 2006, 28, 208 - entry into force 01.01.2007]
4) the payer of the consideration specified in subsection 16 (2) or (3) is the Estonian state, a local government, a resident or a non-resident through or on account of its permanent establishment located in Estonia.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]
5) [Repealed - RT I 2006, 28, 208 - entry into force 01.01.2007]

(7) Income tax is charged on interest received by a non-resident from the Estonian state, a local government or a resident, or from non-resident through or on account of its permanent establishment registered in Estonia, if it significantly exceeds the amount of interest payable on the similar debt obligation under the market conditions during the period of occurrence of the debt obligation and payment of the interest. In that case income tax is charged on the difference between the interest received and the interest payable according to market conditions on the similar debt obligations.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

(8) [Repealed - RT I 2008, 51, 286 - entry into force 01.01.2009]

(9) Income tax is charged on all pensions, scholarships and grants, cultural, sports and scientific awards, benefits and gambling winnings paid on the conditions provided for in subsections 19 (2) and (3), and benefits paid on the basis of the Parental Benefit Act which are paid to a non-resident by the Estonian state, a local government, a resident or a non-resident through or on account of its permanent establishment located in Estonia. Income tax is charged on insurance indemnities paid on the conditions provided for in §§ 20–21 to a non-resident by the Estonian Health Insurance Fund, Estonian Unemployment Insurance Fund or a resident insurance company, and on payments made from a pension fund registered in Estonia.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

(10) Income tax is charged on remuneration paid to a non-resident artist or athlete in connection with his or her performance or competition in Estonia or the presentation of his or her works in Estonia. Income tax is also charged on remuneration paid to a non-resident third person in connection with the activities of a resident or non-resident artist or athlete in Estonia.

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